Six months after the onset of the coronavirus pandemic, many merger and acquisition transactions remain delayed or sidelined. As companies report their Q2 financial results, investors are also focused on opportunities to acquire promising businesses that may face near-term financial and operational challenges, at lower valuations than were available prior to the pandemic. While these deals may appear to be hard to come by, shrewd investors will be well served by considering both out-of-court and bankruptcy acquisitions of distressed companies. This client alert describes some of the fundamental deal considerations, and highlights the pros and cons, associated with each of these strategies.
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For more information on acquisitions out-of-court and in bankruptcy, please contact Ann Marie Uetz, John Simon, or your Foley relationship partner. Foley has created a multi-disciplinary and multi-jurisdictional team to respond to COVID-19, which has prepared a wealth of topical client resources and is prepared to help our clients meet the legal and business challenges that the coronavirus outbreak is creating for stakeholders across a range of industries. Click here for Foley’s Coronavirus Resource Center to stay apprised of relevant developments, insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form.